Fashion Business Plan Example –

Clothes Business Plan

This is an example business plan for a start-up clothes business selling a
collection of self-designed bags and will expand the product portfolio to apparel
for female motorcyclists – the goal is to establish itself as a well-known brand for
motorcycle clothing for fashion-conscious women by combining functionality
(protection) and style.
The founder is an experienced motorcyclist herself and understands the particular
needs of female fellow motorcyclists. She also has conducted a survey of more than
130 women associated with motorcycle clubs/associations. By currently working in
sales and merchandising at Ducati Triumph she could gain insight the motorcycle
industry. She has worked as an art director for eight years and has leadership
experience, though not very much fashion design experience yet.
The product (fashionable motorcycle bags and clothing) is supposed to fill a
niche in the motorcycle apparel market, which makes the emphasis on fashion
also a part of the company’s USP in contrast to the usual sports
racing/Americana look that is traditionally produced by competitors. 9o
The business plan also provides a brief overview of the market situation, the location
(Soho, close to the fashion district) and competition as well as a risk analysis. The
business risk will be mitigated by the initially limited product range (i.e. bags). It also
gives information regarding potential business partners, the marketing plan, venue
organization and financing.

Overview of this clothes/fashion business plan

Executive Summary
Products
Operational Procedures
Unique Selling Propositions
Company Vision and Strategy
Market Analysis
Competition
Target Group
Risk Analysis
SWOT Analysis
Location of Headquarters
Business Partners
Consulting
Marketing Plan
Price Strategy
Communication Strategy
Business Organization
The Founder and Director
Staff
FINANCIAL PLAN
Executive Summary
SPOTLIGHT ON STYLE STORE is a start-up store that will sell self-designed clothes
for everyone to look stylish everyday. The store will start off with a collection of clothes
and will expand its product portfolio successively to eventually become a well-known
brand for clothing and for fashion-conscious human. SPOTLIGHT ON STYLE STORE
will make it possible for everyone to attend and be confident without having to change
their clothing, no matter what the occasion is.
The store’s founder, Mr. SPOTLIGHT ON STYLE STORE FOUNDER, is a reseller of
some clothing brand himself and currently part time working in selling clothes at Public
Market in Santiago City. He has found that the current clothing brand is missing the
niche of fashionable and trendy clothing. Most stores designing popular style that has
no uniqueness at all. Since Mr. SPOTLIGHT ON STYLE STORE FOUNDER has little
experience in the fashion-design clothing industry, he believes that by first launching the
business with well-designed clothes comes with less risk and greater chance for
sustainable, successful market-entry.
SPOTLIGHT ON STYLE STORE will develop its brand with a clear goal in mind. It will
create a uniform user experience and deploy a great variety of modern internet-based
marketing instruments. Close cooperation with highly successful professional
photographers that Mr. SPOTLIGHT ON STYLE STORE FOUNDER knows personally
will give the marketing approach an edge offline and online and greatly impact the
presentation of the store to potential clients and partners. The products will be
messengers of the brand and proudly show off fashionable girls and boys. The clothes
also later the clothing will be cool and elegant, making a statement to be summarized as
follows: I live and think independently and I am a fashionable, authentic, trendy human.
He has already designed dozens of looks and as a designer will be able to create many
marketing resources himself and strike up business relationships in the creative
industry. SPOTLIGHT ON STYLE STORE’S home office will be located in Centro East,
Santiago City. While the initial goal is to sell to retail stores, expansion plans include
potentially opening its own retail store. Lastly, Mr. SPOTLIGHT ON STYLE STORE
FOUNDER is very strong competence profile make the business venture very likely to
lead to a successful market entry.
Products
The store’s product portfolio is aimed at providing everyone a stylish options of clothing
to buy and wear. As the number of educated people who buy and wear increases, it
becomes clear that there is a market niche for providers that cater to everyone who
wants to wear clothes in high fashion- whether he/she is attending to a party, to work or
to a date.
The first 12-18 months of operation will be dedicated to starting a line of shirts, as this is
a good way to gather experience, contacts and a first following of consumers. The costs
for starting a shirts collection are significantly lower and there is high demand in the
market. They will be crafted in styles that appeal to everyone and will combine
fashionable with aesthetic design. The fabric will be mainly high-tech artificial fabrics
which are cut and rip-proof and can last for decades.
Since designing apparel is the mid-term goal of the young enterprise, it makes sense to
elaborate the planned product portfolio already at this point. [fashion business plan
example] COMPANY will give special attention to the styles, colors and fits to flatter the
curvy woman. The niche specialty will be fitting women sizes 6-14, although some
clothing will range in sizes 0-14. The products are modern motorcycle wears, including
apparels, boots, helmets, bags and motorcycle inspired accessories, such as scarves.
Since [fashion business plan example] COMPANY creates clothing that people can
wear on and off the bike, the clothes have removable and/or very flexible padding.
When designing the clothing, Mrs. [fashion business plan example] COMPANY
FOUNDER focuses on designs that are able to unify function and beauty. All Jackets
and any gear that is meant to protect from abrasion and impact while riding a
motorcycle will be tested and CE certified.
The goal is to create pieces that are exactly what an urban, individualistic woman is
looking for, something that she would wear even if she is not going to ride a motorcycle.
Therefore the clothing has to be serving two needs at the same time, just like for
example Nautica that caters to the needs of marine sports enthusiasts but has
developed such a cult that its clothing is worn in daily life (also Surface to Air produces
beautifully crafted riding jacket that might serve as an inspiration for [fashion business
plan example] COMPANY: www.surfacetoair.com/store-us/?
pg=style&collection_id=52&style_id=58).
One very special element of the product portfolio is the inclusion of a new material
compound called D30 (www.youtube.com/watch?v=vqDe0C4OKbM&feature=related).
D30 is a lightweight and very flexible high density plastic material that can be used for
padding and provides a lot of safety despite its being thin and lightweight. The initial
communication with the manufacturer that came up with this new material has not yet
had a positive outcome. Using this particular material is still considered an important
element of the product portfolio of [fashion business plan example] COMPANY.
Operational Procedures
SPOTLIGHT ON STYLE STORE’S studio and office is located within STORE’S
FOUNDER. At the point that [fashion business plan example] COMPANY requires other
employees to work in-house, a separate live or work space might be necessary.
Presently, [fashion business plan example] COMPANY does not have a bricks-and-
mortar retail location. All prototype construction and manufacturing will be done off-site
at a seamstress’ shop and at the chosen manufacturing facility. Marketing can be done
in-house or at marketing consultant [fashion business plan example] PARTNER
Sielegar’s (see section about business partners) office space.
In its first three years of operation the company will be producing in the USA and
outsource manufacturing to dedicated service providers. Mrs. [fashion business plan
example] COMPANY FOUNDER will do the designing work herself and through her
well-connected business relationships, she will be able to take care of many of the firm’s
vital functions of marketing, such as public relations, marketing and other
communications-related activities.
The company will set up a professional supply chain management to be able to cut
costs and deliver flexibly and punctually at the same time. Supply chain management is
of prime importance for young fashion and design firms. Good supply chain
management entails close communication with suppliers, warehouses, logistics firms
and the client. Diligent research and comparison of shipment options and building
relationships with key personnel within logistics providers’ facilities will help [fashion
business plan example] COMPANY stay on top of its supply chain management. Due to
the small-scale nature in the beginning of the business it will be relatively easy to
coordinate the inflow of fabric and outflow of product. Ground transportation with UPS
will be utilized in most cases. In the case that international shipments are needed, air
transportation will also be an element of the logistics organization of [fashion business
plan example] COMPANY. No products will be shipped on consignment basis,
consignment will be avoided altogether, due to the risky nature of working on
consignment. [fashion business plan example] COMPANY will have a dedicated sales
representative who will search out potential buyers.
To control costs, track inventory and manage stock levels at the later stages of business
operation, an inventory control system will be set in place. This will include the standard
bar code with its related equipment and software. Eventually, staff will conduct annual
inventory audits and hire outside auditors when necessary. All accounting and finances
will be maintained using in state-of-the-art software.
The company will secure showrooms in [fashion business plan example] LOCATION
City. Purchasing from [fashion business plan example] COMPANY, buyers receive
product displays and promotional materials with purchase. Additionally, [fashion
business plan example] COMPANY will work closely with regional sales representative
of motorcycle apparel buyers. Mrs. [fashion business plan example] COMPANY
FOUNDER will also attend relevant pre-season fashion trade shows and have all the
necessary equipment at her disposal.
Unique Selling Propositions
The company will have a set of unique features, which will differentiate it from
competition. The most important unique selling proposition of [fashion business plan
example] COMPANY is to be found in the capabilities of the founder herself. The owner
of [fashion business plan example] COMPANY, Mrs. [fashion business plan example]
COMPANY FOUNDER, being very experienced in graphic design and project
management and maintaining impeccable contacts in the motorcycle world and fashion
industry, will invest all of her personal time and expertise into the startup.
The fashion and retail industry tends to be overly youth and small size focused. Many
female motorcycle riders are forced to wear men’s clothing which denies their femininity
and makes them wardrobe-wary when riding out for a social occasion. However, by
closely following high fashion trends as well as customers’ purchasing preferences,
[fashion business plan example] COMPANY will tailor styles to meet the specific needs
of the clientele. The key feature that separates [fashion business plan example]
COMPANY from all other competitors is its commitment to providing women stylish,
quality accessories and clothing options. Because the primary concern is ensuring that
consumers are happy with the fit and style of their purchase, [fashion business plan
example] COMPANY will have a strong impact on the female motorcyclist community
and earn strong word-of-mouth endorsements from happy clients.
Customers will benefit from the experience and knowledge of the company staff about
motorcycle gear and fashion. The goal is to implement a superior customer service
system. The well-trained personnel will provide an edge in the competition and the
brand will quickly become acknowledged broadly. Protecting the brand and its good
reputation will become a key part of the strategy to ensure that the unique selling
propositions that come along with a recognized brand name are maintained as long as
possible.
Company Vision and Strategy
The vision pursued by the establishment of [fashion business plan example] COMPANY
is a high-end line of motorcycle wear for women. It will be protective, the highest quality,
top style and comfortable to wear. The brand [fashion business plan example]
COMPANY will be recognized as eco-conscious and as making a difference for its
customers and for the world. The brand will be the opposite of Harley brand clothing,
truly feminine, sexy and elegant.
Right from the start, it is planned to develop and make expert use of an online
presence. This is a very important part of the business undertaking, as the web
presence will enable [fashion business plan example] COMPANY to showcase its
products, establish the brand and raise awareness in the industry. It is likewise
thinkable that the first customers of [fashion business plan example] COMPANY will
actually buy the product from an integrated webshop. From these early revenues the
company will be able to generate a higher cash flow, benefitting from ways to make
itself depend less solely on high volume contracts with the retailers and wholesale
clients.
In the long run, the potential for regional and/or national expansion will be explored
further. Some concrete goals, which must be attained before an expansion can be
considered, are to penetrate and raise awareness in 30% of the targeted consumer
market, build a customer base and mailing list and become a profitable business with
expansion potential within a maximum of three years.
The first major milestones will be securing funds and setting up the business. This is the
main focus right now. In five years, [fashion business plan example] COMPANY will
have established itself within the community and within the industry and set up overseas
sourcing and manufacturing operations (most likely in China or Vietnam). It will become
the leading brand in contemporary apparel of the perfect blend between cutting edge,
high-tech protective wear and femininity. [fashion business plan example] COMPANY
will make an impact globally through initiatives built into the company structure,
supporting employees and communities around the world.
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Market Analysis
To get a good picture of the market environment, it is necessary to first take a look at
the American retail market, with a special a focus on fashion. The next step is a close
look at the market for motorcycles and motorcycle wear and specific market data
concerning the target group.
The sales reported in U.S. total retail sales in 2011 were $4.7 trillion, which represents
an 8% increase over 2010 total retail sales (including food service and automotive). The
US retail clothing industry includes about 40,000 companies that operate 80,000 stores
with combined annual revenue of $130 billion. The industry is highly fragmented and
concentrated at the top. The 120 largest companies operate 40,000 stores and account
for 65% of industry revenue. Most companies operate just one store, but 1,000
companies operate more than two. Demand for clothing is strongly influenced by the
growth of the economy and personal income. During the 2000-02 recession for
example, sales fell 20% at Abercrombie & Fitch and at The Gap, Inc.
The typical store has $1 million in annual sales and ten employees, but 3,000 stores
have annual sales over $5 million. Within their specialty, stores typically sell a full range
of items including regular clothes, outerwear, and underwear. Many stores also sell
shoes, handbags, jewelry, make-up, and perfumes. The clothing retail industry includes
stores specializing in women’s clothing (50%) or men’s clothing (20%). Stores may also
specialize in children’s clothing (nearly 10% of sales, including infant wear) or
accessories.
A very interesting trend in the American retail economy is the ever more frequent
occurrence of e-commerce. Online shoppers in the United States are estimated to be
spending $327 billion in 2016, up 62% from $202 billion in 2011, according to a
projection released by Forrester Research Inc. In 2016, e-retail will account for 9% of
total retail sales, up from 7% in both 2012 and 2011. That represents a compound
annual growth rate of 10.1% over the five-year forecast period.
The report further points out that much of the growth comes from online retailers
improving their web sites and services. This appears to be particularly true in the areas
of apparel and jewelry, which have integrated a web design selling tools such as zoom,
color swatching, and configurators. The steady growth in the number of web shoppers
also is helping to boost e-commerce sales. Forrester says that 192 million U.S.
consumers will shop online in 2016, up 15% from 167 million in 2012. But the bigger
factor in driving e-commerce growth is that each shopper will spend more on average,
the report says. U.S. consumers in 2016 will each spend an average of $1,738 online,
up 44% from $1,207 in 2012. The strongest reason for this form of sustained strong
growth are the variety of selling points in e-commerce, such as loyalty and discount
programs, low prices in general, this strong surge in mobile Internet and the overall
tendency of the consumer to shop for the best deal.
There are roughly 157 million women in the US in 2011, about half of them are in the
age and income group that would qualify them as target customers for [fashion business
plan example] COMPANY. The median income is $48,600. 20% of women surveyed in
our market research make between an $50k and $200k annually.  We will initially seek
customers locally, but will increase our reach throughout the United States and abroad
as we build our brand and secure our image.
The Motorcycle Industry Council reports that between 2003 and 2008, the number of
women who own their own motorcycle has grown 52%. 1 in 9 motorcycles are owned by
women. In 2009, there were 11 million motorcycles in the US. Women owned 1,155,000
of them. 40% of female bikers are married (marketing to their husbands/significant
others). The majority of female motorcycle riders we surveyed were white, with black
women following. 79% of those women own their own home and 35% have a college
degree. 25% work in business or health care. They shop largely at large department
stores and national retail clothing chain stores as well as online retailers. The majority of
women surveyed have a pant size of 12-16 and top size above an XL.
TO BE INCLUDED
Perhaps a few comments about the worldwide market situation of the fashion industry
will serve to illustrate the strong growth that the sector is experiencing. The world
clothing and textile industry, encompassing clothing, textiles, footwear and luxury
goods, reached almost $2,560 trillion in 2010, according to the market intelligence
agency MarketLine. The apparel, luxury goods and accessories portion of the market,
which accounts for over 55% of the overall market, is expected to generate $3,180
billion in 2015, with a yearly growth rate in excess of 4%.
The world womenswear industry is expected to exceed $621 billion in 2014, according
to MarketLine, representing over 12% yearly growth. The leading market sub segment
is clothing retailers, with over 64% of total market value. The EU has a more than 37%
stake in the world market, which is relatively fragmented and highly competitive.
(AMERICA’S STAKE, ASIA’S STAKE?)
The world menswear industry is expected to exceed $402 billion in 2014, according to
MarketLine, representing over 14% expansion in five years. The leading market sub
segment is clothing and footwear, with over 58% of the market. The Americas have a
35% stake in the overall market.
The world market for textiles made from organically grown cotton was worth over $5
billion in 2010, according to Textiles Intelligence. US and EU clothing imports and
China’s exports grew in value in 2011. Companies that recorded increased revenue
include: Benetton, Levi Strauss, H&M, Gap, Marks and Spencer, Gildan Activewear,
TJX and Perry Ellis. In the EU, the clothing market is predicted to show almost 5%
yearly growth from 2010 to 2015.
Seniors spent 28% more on online luxury fashion bargain purchases in 2011 than in
2010, compared to 19% for millennials, 12% for gen Xers, and 9% for boomers.
Millennials spent 33% more on online luxury fashion purchases in 2011 than in 2010.
Members of generation X spent 23% more on online luxury fashion purchases in 2011
than in 2010.
 
[REST OF MARKET ANALYSIS REMOVED]
Competition
Competition in the fashion industry is always a big factor. Even though [fashion
business plan example] COMPANY is operating in a very tight niche, there will be still a
wide array of competitors, whose business operations partially overlap the business
model of [fashion business plan example] COMPANY. To each brand of competitor
[fashion business plan example] COMPANY will have the right answer to differentiate
itself and perform well even in a very competitive business environment.
The greatest competitive threat would be a re-focusing strategy of incumbent
specialized manufacturers. If suddenly these large and experienced firms decided to
produce exactly the kind of stylish, multi-use motorcycle apparel that [fashion business
plan example] COMPANY is planning to launch, they would contest the market share of
[fashion business plan example] COMPANY significantly. Over the last few years,
motorcycle manufactures like Harley–Davidson for example have been catering more to
the female crowd. More motorcycles are being created with women in mind. Lower seat
heights, less weight, and easy maneuverability make bikes like Harley’s Switchback a
popular choice for women riders. The danger of growing competition from incumbent
firms is therefore very real.
[fashion business plan example] COMPANY will differentiate itself with the more
exclusive and limited collection of clothes and will offer a very feminine, elegant and
sexy style which sets it apart from overall brand image of companies like Harley-
Davidson, Triumph, River Road or Vanson Leathers. Small stores can often compete
very effectively with large ones by targeting their products at different customers, even
though they have less infrastructure at their disposal and can often not undercut big
competitors price-wise.
In addition to competition from traditional department stores, new competition in recent
years has come from discounters like Wal-Mart and from catalog and Internet retailers,
which offer irregular yet very economic selection of motorcycle apparel. The competition
with these firms will be strongly influenced by the higher quality and the greater likability
of [fashion business plan example] COMPANY. The strong brand of [fashion business
plan example] COMPANY and its more targeted marketing approach will be sufficient to
perform satisfactorily even when large discounters try to tap into the motorcycle clothing
market with special editions at cut rate prices.
In the US, a selection of lines most closely competing with [fashion business plan
example] COMPANY are for example Deth Killers Brooklyn (dethkillers.com/), Belstaff
(belstaff.com), Moncler (www.moncler.com), Ragazza Gear (ragazzagear.com/), Motor
Grrl Brooklyn (motorgrrl.com), Ruby Helmets, Go Go Gear LA (gogogearla.com),
Bogner (www.Bogner.com), Outlier (outlier.cc), Vanson Leathers
(vansonleathers.com/), Alpine Stars alpinestars.com) and Ed Hardy. Internationally
worth mention are Dainese (www.dainese.com/it_it), Spidi (spidi.com) and Diesel
(www.diesel.com).
[fashion business plan example] COMPANY would be the only real niche provider for
hip, fashion-conscious female motorcyclists. While other stores offer some style
equivalents, they are not focused solely on fashionable wear. [fashion business plan
example] COMPANY will therefore have a distinct competitive advantage in its niche.
Supplier relationships and exclusive product offerings will prevent future competitors
from entering the market as a competitor. It takes time to build a motorcycle wear
design and manufacturing company, and by the time a competitor attempts to compete
with [fashion business plan example] COMPANY directly, the young firm will have
already established a strong customer base and following.
Target Group
[fashion business plan example] COMPANY is a business-to-consumer retail company.
Female motorcycle riders ages 25-55 are the target customers. The target customers
are trailblazers and trendsetters. They value uniqueness, convenience, service and
quality. As they retire, price becomes a factor in decision-making, though they are
generally of “buy now and pay later” consumption philosophy.
Motorcycle-enthusiastic women live in big cities, are financially independent and make
household decisions. They own and/or ride motorcycles, appreciate motorcycle culture,
and/or ride as a passenger with someone else (many women cultivate an interest in
motorcycles this way). Research conducted by Mrs. [fashion business plan example]
COMPANY FOUNDER has shown that many women who ride motorcycles shop at mid-
range department stores like Macy’s and Dillards, or national retail chains like Jcrew or
Anthropologie. Their income lies at $50-200,000 per year and they own homes. They
ride for longer trips and transportation. For this reason, it is important to market also in
the motorcycle specific retailers across the US, as this clientele buy their motorcycle
wears in specialty shops. Inspiration can be drawn from Go Go Gear LA: On their
website they have a long list of retailers, most of them are speciality shops for
motorcycle riders.
To reach the target group, [fashion business plan example] COMPANY will target the
retailing chains, where the target customer usually buys. Originally it was thought to sell
to high-end retailers such as Barneys, Henri Bendel, (also for example concept stores in
Manhattan and Brooklyn such as Opening Ceremony and American Two shots) etc.,
and have a celebrity and wealthy clientele. After considering the target customer
properties and price point of [fashion business plan example] COMPANY’s products,
Mrs. [fashion business plan example] COMPANY FOUNDER considers entering into
the mid range retail environment with stores such as [business plan example partner].
After it is established amongst the motorcycle riding community, the brand shall have a
cult following beyond motorcyclists (i.e. Nautica is worn by people, even if they do not
own a boat; Ron Jon surf is the equivalent of this for surf wear, etc.).
It is thought that teaming with companies, riding instructors, motorcycle tour companies,
bloggers, way finder applications (i.e. Garmin, Waze, Google Maps), workshops for
women interested in learning about motorcycle repair, or starting a motorcycle blog/club
for women to ride and share together are possible ways to connect with the target
group.
 
[TABLE REMOVED]
Risk Analysis
As a young startup in the highly competitive fashion industry and dealing with very high
product development, manufacturing and logistics costs, [fashion business plan
example] COMPANY is confronted with a large quantity of relevant risks. By starting out
with a collection bags, the startup-costs and risks are reduced. There will be more time
to forge business relationships and Mrs. [fashion business plan example] COMPANY
FOUNDER will be able to identify the best-priced raw material suppliers, pattern-makers
and other partners involved in the realization of the business goal.
There are certain risks that the company will not be able to influence, such as market
risk. These systemic risks, which also include political and currency exchange risks
(these will become relevant as soon a overseas suppliers or customers become
involved), cannot be avoided by anyone in the industry. A farsighted and liquidity-
conscious management should be able to maintain a reasonable degree of financial
flexibility to deal with any negative impacts from the overall economy. The impact of
currency exchange risks is considered to be quite low in the first few years of operation
as it is not planned to generate substantial revenue through overseas sales. Likewise
on the buying side the currency exchange risks are not deemed overly significant, even
though it is considered to import certain amounts of fabric from China and/or Europe
and conduct overseas manufacturing at later stages.
The operational hazards that the company will be confronting are of a very different
nature. To begin with it is very unlikely that the prototyping and manufacturing will be
smooth and flawless from the very beginning. A lot of scrap will be produced until the
production process is perfected, which will lead to high production costs. Other
unforeseen costs are going to be incurred at least in the first two years of operation.
Even though by the selection of experienced and well-reputed partners some
uncertainty might be eliminated, it would be too optimistic to assume that everything will
work right from the beginning.
With the wrong partners in overseas manufacturing there is a very high risk of designs
being knocked off and copied, which reduces the value of the brand and can in some
cases even hurt sales. These risks of theft of intellectual property can be minimized by
the generous use of contracts and NDAs, the diligent management of critical data,
choosing partners with great care and using certain copyright best practices such as
Pauper’s copyright on top of getting each season’s designs protected by the US
copyright office.
It is also advised that the high risk of damage to products during the warehousing or
transport as well as all other material risks (damage, theft, etc.) concerning the office
infrastructure and health risks of the founder and eventually the staff team should be
covered to maximum extent by adequate insurance. Especially with a very tight cash
base, the impact of any mishap in the warehouse can be devastating and lead to the
ruin of the company, so maximum insurance coverage will be purchased.
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SWOT Analysis
Strengths: Weaknesses:

●      Founder has experience as an

●      Very tight niche
entrepreneur and can do the graphic design
●      No academic business administration
and fashion design in-house
background of founder
●      Unique shopping experience with
●      Founder has no practical experience in
exceptional customer service
fashion design and manufacturing of
●      [fashion business plan example]
fashion
LOCATION is a great location for a design
●      The business is to be established in
firm
economically unstable times
●      Founder has experience working with a
 
staff, both nationally and internationally

Opportunities: Threats:

●      Outstanding service will lead to repeat
business
●      Business opportunities by growth of
online e-commerce
●      Large and growing consumer base due
to upswing in the motorcycle industry
●      Many potential product lines for
expansion
●      By starting out with accessories and
postponing apparel, Mrs. [fashion business
plan example] COMPANY FOUNDER
increases the chances for sustainable market
success
●      Cost and effectiveness of marketing to
women motorcycle riders and other
consumer groups
●      New competitors or incumbent firms
paying more attention to the niche that
[fashion business plan example]
COMPANY is focusing on
●      Very high startup costs, liquidity risks
●      New economic crisis impacting on the
US retail market
●      Inability to get the preferred padding
materials
 
  

Location of Headquarters
The business is being founded in [fashion business plan example] LOCATION City.
[fashion business plan example] LOCATION City has a long tradition of being a hub for
fashion design and up-and-coming innovative business model. Although it is an
expensive headquarters location both in daily operation costs and initial start-up costs,
the unique advantages that the location offers outweigh the disadvantage of these
elevated costs.
Very good infrastructure, numerous potential business partners, ease of travel in and
out of the city, high-quality materials available, a variety of relevant industry events and
an ample supply of highly qualified labor were all factors which persuaded the choice
towards [fashion business plan example] LOCATION City. Also the founder is
personally bonded to the area as she has been living in [fashion business plan example]
LOCATION City for 3 years.
Business Partners
We will partner with local organizations such as the Chamber of Commerce and
Downtown Merchants Association as often as possible. We already have connections in
all the necessary places. These strategic partnerships will allow us to piggyback on
publicity for local events, as long as they are within our targeted demographic.
These organizations are dedicated to promoting local businesses within our community
and sponsor several events downtown each year. As a member of these organizations,
[fashion business plan example] COMPANY will gain exposure, make business
contacts, and will benefit from Chamber and Association advertising, Web site
promotions and events
.
[LIST REMOVED]
Consulting
[fashion business plan example] COMPANY will employ the services of the various
consulting firms and freelancers in its first few years of business. The services that
[fashion business plan example] COMPANY will employ are to aid the founder to
acquire important know how and business acumen to help her achieve the ambitious
goals she set for the company. At this point, three different consulting entities have
been chosen for the future cooperation or are already working together with Mrs.
[fashion business plan example] COMPANY FOUNDER. These consulting entities are,
listed in order of acquaintance: [fashion business plan example] PARTNER Marketing
Consulting, [fashion business plan example] PARTNER Small Business Consulting and
[fashion business plan example] PARTNER Entrepreneur Coaching.
[fashion business plan example] PARTNER (www.XXXX.com) will manage the setting
up of the brand, including a great variety of services such as logo design, clothing label
design, brand book, web design, market intelligence gathering, marketing testing and
copywriting among others. [fashion business plan example] PARTNER is very well
known in the [fashion business plan example] LOCATION City area and overseas and
has been successful in the market for 7 years. Its list of clients include firms such as
[LIST REMOVED].
[fashion business plan example] PARTNER (www.XXXX.de) is a German freelance
business consultant and professional business writer with 6 years of experience.
[fashion business plan example] PARTNER has completed over 240 business and
financial plans and dozens of other, complex business writing and consulting projects.
Due to extensive training in marketing and sales techniques, [fashion business plan
example] PARTNER was able to add important skills such as Google Adwords, email
marketing, social media marketing and webinar marketing to his abilities.
The [fashion business plan example] PARTNER Engine (www.XXXXXX.com) is a
coaching provider that helps ensure partners concretize their business models and
briefs them on what it means to be successful in the competitive startup environment.
The [fashion business plan example] PARTNER Engine is likewise well known amongst
some of the top grossing businesses worldwide and has been in the market for 9 years.
Its list of clients includes [LIST REMOVED}.
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Marketing Plan
Price Strategy
[fashion business plan example] COMPANY will set prices that will underscore the high
quality of the products. With very high design and production costs, the price must be
set to ensure that the break even can be reached in a reasonable time. Therefore
[fashion business plan example] COMPANY will also use its price strategy to stay true
to its target group focus, which is primly made up of educated women of the upper two
quartiles on the income scale.
Communication Strategy
Mrs. [fashion business plan example] COMPANY FOUNDER has a strong marketing
background and recognizes the significance of effective marketing. Additionally, she will
take the services of a marketing consulting firm for the initial setting up of her branding
(logo, corporate colors, brand book, etc.). She will seek to implement a variety of
marketing measures including PR-Strategy and of course also all the conventional
methods such as print-ads, trade shows and researching and contacting potential
clients. In order to not overstretch the tight resources available during the initial start-up
phase, the marketing budget for ongoing expenses is to be kept to no more than 5% of
gross annual sales.
The marketing message, logo and slogans will revolve around the idea of women
motorcycle riders as beautiful trendsetters and feminine ground-breakers. Women riders
are in their prime and at their best, meaning these women deserve to be recognized as
a force within the fashion consumer market. [fashion business plan example]
COMPANY’s initial marketing efforts will remain local until a presence in the female
motorcyclist community is established. These initial efforts will rely heavily on local print
and broadcast media coverage, traditional advertising, signage, a direct mail marketing
campaign and networking. A significant portion of the advertising budget will be
allocated to print and broadcast media.
In the wake of launching its business and for every new season, [fashion business plan
example] COMPANY will organize marketing events and shows to create awareness.
The Chamber of Commerce, merchant associations and media contacts will help
promote marketing events in local newspapers and radio advertising. Comprehensive
advertising and semi-annual direct mail marketing campaigns will follow the grand
opening.
A very important focus is placed on [fashion business plan example] COMPANY’s
consistent presence at trade shows, industry networking events and fairs for fashion
designers. The US hosts more fashion events than any other country in the world. The
industry is well supported by private financers that promote emerging designers and
host regional fashion shows. However, unlike other developed countries, most of the
large fashion events in the US were only launched in the last few years, the surge is
extraordinary. In 2008, the US hosted at least 44 large-scale fashion events versus only
11 events in 2004. France and Italy for example had fewer events (2 and 4 respectively
in both 2004 and 2008). The sponsors/financers in the fashion industry act as key
drivers by promoting designers and regional fashion events. Therefore it will be very
important for [fashion business plan example] COMPANY to be present at all these
events and continually build a network in the industry.
Marketing opportunities will be continually utilized as [fashion business plan example]
COMPANY expands its business and customer numbers grow. Measures such as
bonuses for recommendations will increase sales as the effects of word of mouth
propaganda become more apparent. To this end the website of [fashion business plan
example] COMPANY will serve the multitude of different purposes. The domain names
[fashion business plan example] COMPANY.me and [fashion business plan example]
WEBSITE have been reserved and site development will begin as funds become
available.
Foremost, the website is to showcase the brand [fashion business plan example]
COMPANY and its accessories and clothing lines and provide customers with the ability
to purchase items online (and retailers to order sample products). As the site
progresses, features such as fashion advice, a blog, designer interviews, newsletters,
and Internet-only specials will become available. Eventually, the internet activities will
establish and nurture an online social community where motorcycle-enthusiastic women
can gather and discuss topics of the day, network and share experiences.
Business Organization
LEGAL ENTITY & OWNERSHIP
[fashion business plan example] COMPANY will be a Limited Liability Corporation
formally organized in [fashion business plan example] LOCATION State (have not filed
yet). Mrs. [fashion business plan example] COMPANY FOUNDER is the company’s
principle owner. If an appropriate partner is found, they will have a minority share.
The business operates within the fashion design industry and is classified under NAICS
code 541490 – fashion design services. All Jackets and any gear that is meant to
protect from abraision and impact while riding a motorcycle will be tested and CE
certified.
 
EXIT STRATEGY
Mrs. [fashion business plan example] COMPANY FOUNDER intends to launch and
grow [fashion business plan example] COMPANY for many years into the future. In the
event that investors require repayment of their initial investments, plus a large return on
their investments, we will seek a partner to buyout the investors’ shares. Another
alternative is a management buyout, which will be agreed upon in advance.
In the long term, [fashion business plan example] COMPANY, as a profitable business,
will become an appealing acquisition for large retail chains.
The Founder and Director
Mrs. [fashion business plan example] COMPANY FOUNDER is the owner, creative
director and spokesperson of [fashion business plan example] COMPANY. She will be
the most import and figure to convert the market entry of [fashion business plan
example] COMPANY to the real success. Mrs. [fashion business plan example]
COMPANY FOUNDER’ comes from a graphic design background and has had
experience as an entrepreneur, managing an art gallery in Chicago and a graphic
design business in [fashion business plan example] LOCATION City.
Mrs. [fashion business plan example] COMPANY FOUNDER spectrum of tasks of the
day-to-day business include: Supervising staff, maintaining inventory and general
bookkeeping, oversee the merchandise purchase, selling and shipping, maintain
awareness of trends within the industry, manage employees, interns and contractors
work, work with public relations/marketing firms to ensure superior marketing plans are
in place and being implemented. She will also attend industry events and travel to find
more suppliers and clients.
Mrs. [fashion business plan example] COMPANY FOUNDER is a native english
speaker and also speaks french. She is proficient in the administration of office
organization software and graphic design. Mrs. [fashion business plan example]
COMPANY FOUNDER is in possession of a drivers license for both cars and
motorcycles and has a motorcycle with which she plans to utilize to communicate her
brand.
Staff
[fashion business plan example] COMPANY will employ the following positions:
 
[LIST REMOVED]
 
The following positions will be contracted out:
Marketing Director: [fashion business plan example] PARTNER Design Factory/[fashion
business plan example] PARTNER
There are several positions that are yet to be filled. However, we feel [fashion business
plan example] LOCATION City has enough budding designers and hungry job
applicants that finding qualified employees will not be an issue. Our administrative
assistant and manager will be paid an hourly wage, plus commission. Bonuses will be
provided with each year of service following an annual review to encourage employee
retention.
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FINANCIAL PLAN
Our company will earn revenue from our customers’ purchases of our products. [fashion
business plan example] COMPANY’s first-year income statement illustrates a profit
margin of TK, with a net income of $TK per month – after taxes. Finally, we have
determined our break-even point will equal no less than $TK in total monthly sales. We
project our annual profits to reach $TK by year three.
Our company will generate revenue from the sale of clothing and other merchandise to
retail stores. First year sales are projected at $TK, and we expect sales to surpass $TK
by the end of year three. We will achieve month-to-month profitability within the first
year.
 
SOURCES & USE OF FUNDS
[fashion business plan example] COMPANY requires a minimum of $XXX,XXX to
launch successfully for the first three years until cash flow becomes more than costs.
 
Funding will be sought in stages. Stage one will be calculated to include start-up costs
through prototyping and gaining initial orders. This includes and is not limited to:
material costs for prototypes, patternmaking costs, shipping and taxes of materials,
TKTK. Stage two will be calculated to include all costs needed after orders are made.
These costs will be much higher as we will be now going into full production. This
includes and is not limited to: TKTK.
 
We are currently seeking additional funding from outside angel investors and business
loans. Start-up funds will be used for manufacturing the line, materials to create the line,
creating prototypes of the next season and operating expenses such as rent, utilities
and payroll. Further, our initial investment will also be used to purchase equipment and
inventory software – all of which will produce future benefits for the company.
Business plan contests, IndieGoGo and Kickstarter are also methods that will be
employed to gain capital for start up.
 
FINANCIAL PLAN
REQUIREMENTS
[fashion business plan example] COMPANY will need $XXX,000 to get our business off
the ground. We are currently seeking funding from outside investors and business
loans.
 
USE OF FUNDS
Funds will be used to pay for fabrics, materials, prototype construction, shipping,
warehouse, contractors, travel, TK. The remainder of the start-up funds will be utilized
to cover operating expenses, such as rent, utilities, payroll, marketing costs and wages.
 
INCOME STATEMENT PROJECTIONS
Based on our marketing plans, location, store size and product offerings, we expect to
collect annual sales of $TK in year one, $TK in year two and $TK in year three.
Our average cost of goods sold will be TK%, which leaves us with a gross margin of TK
%. Our minimum monthly fixed costs are $3,300 per month (this doesn’t include rent,
utilities, materials, payroll), so we will need to generate sales of $TK per month to break
even. We will become profitable on a monthly basis before the end of our first year.
In our third year, we will earn net income of $TK. The accompanying income statement
demonstrates our company’s profitability.
 
CASH FLOW PROJECTIONS
Our business will not collect immediate payment from customers, so our cash flow
statement will be different from our income statement. More about cash flow here.
 
BALANCE SHEET
[fashion business plan example] COMPANY will launch with $600,000 in equity capital
and $50,000 in loans (I don’t know if this is correct). Details are shown in our enclosed
balance sheet.
 
ASSUMPTIONS
Our projections are based on the assumption that the economy, consumer spending
habits and population growth in [fashion business plan example] LOCATION will
continue for the foreseeable future.
We must also assume that our future buyers will continue to buy inventory from us at
prices that allow us to maintain our present margins. It is also important that we are able
to hire reliable employees at reasonable wages.